Tata Neu's Debut Marred By Glitches As Users Pile In To Test Super App
Tata Group's super app Neu faced complaints of glitches and poor experience on its launch day.
Tata Group's super app Neu, aimed at expanding the online reach of salt-to-software conglomerate, faced complaints of glitches and poor experience on its launch day.
Users took to Twitter to flag one-time password and login issues. Attempts to sign up prompted a ' there was an error' message citing interruption in server multiple times.
The search engine was slower than Amazon or Flipkart apps and it took time to navigate between the pages, at least on Thursday evening. A food order placed by one of BloombergQuint's editors was cancelled—a refund was initiated though.
The launch-day troubles underscore the challenge that the $103-billion Tata Group will face to win over users in its battle with Jeff Bezos' Amazon.com Inc. and Mukesh Ambani's Reliance Industries Ltd. All this unfolds when Covid-19 has driven an unprecedented shift towards digital transformation.
Tata Neu has been downloaded 500,000 times on Google Play Store since testing began in October. Tata aims to capture a larger share of India's growing internet economy with Neu by letting users from buy groceries and booking flights to taking loans on the same platform.
Screenshot from the Neu app. (Source: BloombergQuint)
Tata Neu, however, houses only Tata-owned goods and services.
What Does Neu Offer?
Neu, the digital services platform under Tata Group’s wholly owned subsidiary Tata Digital Pvt., is an app inside an app.
The homepage has 12 verticals including grocery, beauty, electronics, flights, hotels, health and entertainment. A default black background is populated with strikingly colourful app icons and logo.
On signing up, users can order groceries from BigBasket, get a test from 1mg, book a stay at a property of Indian Hotels Co., buy electronics from Croma, order a meal on Qmin, style up your wardrobe with Tata CLiQ and Westside and book a flight on Air Asia.
It also offers Starbucks coffee and Tata Play entertainment.
Vistara, the joint venture of Tata Sons Pvt. and Singapore Airlines Ltd.; Tata Motors Ltd.; and Cure.fit, the health and fitness startup in which Tata owns a little over 10%, are missing so far.
An existing user of BigBasket or 1mg or any other Tata services does not need to add personal information. The super app has it saved, already.
A Tata Neu member can use credit cards, debit cards, online banking, pre-paid instruments, UPI, Tata Pay Balance, or any other form of payment enabled by Tata Pay. Users may pay via QR code using Tata Pay UPI, just like Google Pay or Paytm.
There's also the option to pay mobile, electricity, broadband bills, and recharges, like in other super apps.
Then, there are articles and listicles on travel and fashion, presented like a fashion blog. That's similar to Nykaa, which also aims to offer a more personalised experience.
Tata Neu's biggest draw is its loyalty programme.
Consumers can earn Neucoins, a form of cashback as well as discounts, with every purchase across all brands available online and in physical stores. These tokens are redeemable for other services through the app or at Tata-owned stores. One Neucoin is worth Re 1.
The app offers deals on smartphones starting from a discount of 7,000; 50% off on room rate, 70% off on women apparel, 60% off on electronics. BloombergQuint couldn't verify if the prices are comparable or lower than what's quoted on Amazon, Flipkart, Reliance JioMart or other online platforms.
“With Tata Neu, we are focused on making the lives of Indian consumers easier,” N Chandrasekaran, chairman at Tata Sons said in a statement. “The power of choice, a seamless experience, and loyalty will be at the center of Tata Neu, delivering a powerful One Tata experience to Indian consumers.”
Pratik Pal, CEO, Tata Digital, said in the statement, “The journey of Tata Neu began with a cumulative consumer base of 120 million users, 2,500 offline stores, along with an 80 million app footprint across our digital assets. It will continue to grow as more brands and categories get onboarded."
Will It Succeed?
The super app gives the 154-year-old Tata Group opportunity to cross-sell to its existing user base. It aims to replicate the success of WeChat, the world's most successful super app that is only available to users in China.
Tata, however, does not have a core use case currently for which consumers come back to their app, said a report from BofA Securities. “Consumers would still have an option of directly downloading any of their other apps like 1mg, BigBasket, etc.”